Just like the stimulus not working as advertised, the deficit projections from the Obama administration as equally flawed. The Congressional Budget Office released new projections yesterday and they paint an even worse picture than before. Look at 2020, the number as twice as bad as predicted.
From the AP:
WASHINGTON – A new congressional report released Friday says the United States' long-term fiscal woes are even worse than predicted byPresident Barack Obama's grim budget submission last month.
The nonpartisan Congressional Budget Office predicts that Obama's budget plans would generate deficits over the upcoming decade that would total $9.8 trillion. That's $1.2 trillion more than predicted by the administration.
The agency says its future-year predictions of tax revenues are more pessimistic than the administration's. That's because CBO projects slightly slower economic growth than the White House.
It does not take a rocket scientist to figure out that these numbers will not lead to a happy ending. It also does not take a rocket scientist to understand that we simply cannot afford a new $1 trillion health care entitlement [deficit neutral my behind].
The only way to bring this debt under control is to remove the spend thrifts and elect politician with the cojones to start cutting everything, and I do mean everything.
Via: Memeorandum
Via: Associated Press
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14 comments:
Good stuff, linked today at the Reaganite Republican... enjoy your weekend:
http://reaganiterepublicanresistance.blogspot.com/2010/03/full-metal-jacket-wrap-around.html
Clifton: These numbers are frightening.....but what is confusing me is the economists all seem to be saying that we are on the road to recovery. With numbers like that, all I see is a serious crisis looming ahead.....something that would make the Great Depression seem like a cake walk. I am no economist....but I know that these numbers are unsustainable.....so why is no one saying what really needs to be said....except for you of course when you said that ALL spending needs to be cut.....
I would suggest the following to bring the debt under control:
1. No new government programs until a surplus is run. And that means a REAL surplus, not one that relies on excess Social Security funds.
2. Total government spending at all levels can increase by no more than 1/2 the annual GDP increase, measured at the end of the calendar quarter of June 30 every year. In years where the GDP does not increase, all spending is frozen.
The level of tax revenue remains a fairly constant percentage of GDP. If the GDP is increasing faster than the spending, the tax revenue will eventually overtake and exceed spending.
What government should be doing is finding ways to make the economy grow, and not by stimulus. Rather, we should be looking at how to permanently increase our GDP.
They either stop the spending and shrink the government, or it will happen without them. If they do it now, they won't be chased through the streets by mobs with buckets of pitch and barrels of feathers.:)
this surprises people how???
Steverino.....don't tell us - tell your reps in congress, over and over again. If they don't hear, vote them out, over and over.
I've lived in Russia in the 90ies when the inflation was about 1000% a year. It sure feels like US is slowly moving in the direction of high inflation - 30% a year at least.
In Russia, it was about 6-9 months before excess government spending would cause high inflation. We will soon find out what is the time lag for US. Trust me, it will be a lot of fun. I am giggling already when I am thinking about the faces of people who voted for Obama. This is "change"? This is "hope"? Never mind fixing the sea levels - this guy cannot run a hot-dog stand.
"I told you so" never been so sweet. I can feel the anti-liberal revolution in the air. 2010 will seem like a storm in the tea-cup even if republicans take over Congress, compared with 2012 elections.
As Al Gore said during the 2000 elections - "But I'll make you one promise here: You ain't seen nothing yet. And I will keep that promise." And he was right the first time in his pathetic life - except he was mistaken about the dates.
Reaganite:
Much thanks for the Linky Love! Enjoy your weekend too!
Lorraine:
It seems like economist, the media and the governing class have all accepted the idea of America living on the "financial edge" for decades to come. I for one don't like the fact we have zero wiggle room. Just the fact that they can be so off in their projections, should cause everyone great pause.
Steverino:
You make some excellent points, I would go a few steps further.
1. Any new government programs should be paid for by eliminating old ones.
2. Tie government spending directly to GDP. If GDP drops then spending drops.
3. Kill the progressive income tax. All it does is allow politicians to buy our votes with our own money by pitting the classes against each other.
4. Banish the word "entitlements" and replace it with its true meaning "charity". Give the charity to only the neediest of the neediest.
5. No more duplication. If states are running a program then that is it, no Federal version of the same program.
We have dug ourselves into on hell of a hole and the only way out is to remove the rose colored glasses and accept the harsh medicine that is offered. We are going to have to start governing with our minds and not our hearts.
Jess:
I am holding onto an old down comforter just in case.
Ron K.
I am not surprised in the least bit. I cannot think of a single instance where the Feds got their numbers right from the get go. Too many of today's politicians love to play Fuzzy Math.
Janelle:
Your advice to Steverino is correct. Our governing class has to feel the pain of defeat over and over again before they get the message.
Hyphenated American:
"I told you so" never been so sweet. I can feel the anti-liberal revolution in the air. 2010 will seem like a storm in the tea-cup even if republicans take over Congress, compared with 2012 elections."
This is why there is this all out push to discredit the Tea Parties. Should the idea that progressive policies led us down the road to ruin, it will spend the end of the Democratic Party forever.
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